The fund will be launched with the name of SBI Real Estate Equity fund or
Magnum Sector Funds Umbrella (MSFU) Real Estate Equity Fund. As per the offer document, the aim of SBI MF Real Estate Equity fund is to provide investors an opportunities for long-term growth in capital through active management of investments in equity and equity-related instruments (including derivatives) of companies in the realty and similar sectors and in debt and money market instruments.
The SBI Real Estate Fund scheme will be available in 2 plans:
1) Growth Option: Where the dividend money will be re-invested
2) Dividend Option: Where the dividend money will be paid to the investors
Unfortunately, Tax benefit is NOT available under the SBI MF Real Estate Equity Fund.
It is an open-ended scheme and it would be available in Retail and Institutional Plan with growth and dividend options.
Minimum investment for the individual retail investors is Rs 5,000 while under the institutional plan, it is at Rs 5 crore.
The SBI Real Estate Equity fund will be tracking the benchmark composite benchmark created using BSE Realty Index to the extent of 60 per cent of the portfolio and BSE 100 for the remainder 40 per cent.
So ultimately, it seems to give a mix of Real Estate as well as other BSE 100 companies when it comes to performance management and tracking.
However, one thing to note is that the Real Estate index is dominated primarily by the Real Estate giant DLF – which has a 35% weightage to move the Real Estate index up or down. Probably that may be the reason why the SBI Mutual Funds have kept a portion of this fund benchmarked against BSE 100.
| No details are available about when this NFO will be made available. Investors who are really bullish about the real estate price rise, which is witnessing a downfall in US and UK markets, may like to take a bet! | Table of Contents |
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